Company registration number 13519992 (England and Wales)
KHALIJ INVESTMENTS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
KHALIJ INVESTMENTS PLC
COMPANY INFORMATION
Directors
Mr Muhammad Asim Khan
Mr Saud Hafeez Siddiqui
Company number
13519992
Registered office
York House, Unit 4
Langston Road
Loughton
Essex
England
IG10 3TQ
Auditor
MUS Accountants Limited
125 The Grove
Stratford
London
E15 1EN
Bankers
HBL BANK UK
9 Portman Street
London
W1H 6DZ
KHALIJ INVESTMENTS PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 18
KHALIJ INVESTMENTS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

As the end of the first reporting period, the company has loan certificate in issue. The finance income from the loan were £66,000 (2022: £78,550) and finance charge were £45,000 (2022: £56,250).

 

The company has made no profit or loss (2022: loss of £22,827).

Principal risks and uncertainties

Payment risk

The company is exposed to the risk that it will not receive all the amounts due on the respective portfolio assets. The issuer's ability to make the profit payments under the Certificates will be adversely affected by defaults in the underlying portfolio assets. The issuer is inherently exposed to the risk arising from changes in quality and the recoverability of the portfolio assets. Default risk may arise from events which are outside the company's control. Investors in the company's Certificates are only exposed to the payment risk associated with specific, relevant transaction under the term of the registered deed of charge and the terms and conditions of the Certificates (segregated payment exposure).

 

The successful management of the payment risk is central to the Company's business and the Directors are provided with information on a regular basis for each of the segregated payment exposure. The risk is mitigated by legal charge over the portfolio assets.

 

Liquidity risk

The company is exposed to liquidity risk arising from the requirement to fund its operations and meet obligations to Certificate holders. Liquidity risk is the risk the the company in unable to meet liabilities as they arise from liquid resources. The Directors regularly review the quality and the recoverability of the Portfolio Assets. Where appropriate the Directors take advice from the trustees of the Certificate Programme.

 

Market risk

Market risk relevant to the company is profit risk. The company has no direct exposure to price risk or foreign currency risk.

 

The company has exposure to profit risk as it pays and receives profit payments on Certificates issued and Portfolio Assets acquired. Anticipated rate of profit on Certificates issued and Portfolio Assets acquired is fixed which mitigates exposure to movements in market.

 

Future developments

The Directors anticipate no significant changes to the company's activities and intend to issue further Certificates in 2023/2024.

Development and performance

The directors aim to continue with the management policies. The outlook for 2023-24 is reasonably encouraging with the director being optimistic about the growth of the company.

KHALIJ INVESTMENTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Section 172 statement - Companies (Miscellaneous Reporting) Rgulations 2018:

Section 172 of the Companies Act 2006 requires an entity's Directors to act in a way they consider, in good faith, will promote the success of the company for the benefit of its stakeholders. The directors of the Khalij Investment PLC have considered their duties, and among other matters, have had regard to:

 

 

In satisfying Section 172 duties, the Director have thought about the factors set out above along with other components which we consider to be important when decisions are being made. Examples of those include relationship with stakeholders, employees, suppliers and customers.

 

On behalf of the board

Mr Saud Hafeez Siddiqui
Director
19 February 2024
KHALIJ INVESTMENTS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company is to issue listed and unlisted, transferable certificates ("Certificates") in series ("Series") under one or more secure certificate programmes ("Certificate Programme"). The company uses the net proceeds of the Certificates to provide funds or acquire financial collateral that meet the eligibility requirements as specified in the Certificate Programme documentation ("Portfolio Assets"). Each Series will have a sponsor ("Sponsor") which is involved in the initiation process of the Series whereby the sponsor will fund any listing fees, expenses and associated costs. The company has created a Certificate Programme. The company has established in the market and has contractual relationships with a variety of service providers for the Certificate Programme.

Results and dividends

The results for the year are set out on page 9.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Muhammad Asim Khan
Mr Armughan Mufti
(Resigned 16 March 2023)
Mr Saud Hafeez Siddiqui
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Future developments

The Directors anticipate no significant changes to the company's activities and intend to issue further Certificates in 2023/2024.

Auditor

MUS Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

KHALIJ INVESTMENTS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
On behalf of the board
Mr Saud Hafeez Siddiqui
Director
19 February 2024
KHALIJ INVESTMENTS PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

KHALIJ INVESTMENTS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KHALIJ INVESTMENTS PLC
- 6 -
Opinion

We have audited the financial statements of KHALIJ INVESTMENTS PLC (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

KHALIJ INVESTMENTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KHALIJ INVESTMENTS PLC
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

 

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

KHALIJ INVESTMENTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KHALIJ INVESTMENTS PLC
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Mr Muhammad Salar Arain FCCA
Senior Statutory Auditor
For and on behalf of MUS Accountants Limited
21 February 2024
Chartered Certified Accountants
Statutory Auditor
125 The Grove
Stratford
London
E15 1EN
KHALIJ INVESTMENTS PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
15 months
ended
30 September
2023
2022
Notes
£
£
Revenue
Financing profit
3
66,000
78,550
Financing costs
(45,000)
(56,250)
Gross profit
21,000
22,300
Administrative expenses
(21,000)
(45,127)
Loss before taxation
-
0
(22,827)
Tax on loss
5
-
0
-
0
Loss for the financial year
-
0
(22,827)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KHALIJ INVESTMENTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
15 months
ended
2023
2022
£
£
Loss for the year
-
0
(22,827)
Other comprehensive income
-
-
Total comprehensive income for the year
-
0
(22,827)
KHALIJ INVESTMENTS PLC
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
6
395,250
362,750
Cash at bank and in hand
3,398
24,958
398,648
387,708
Creditors: amounts falling due within one year
7
(371,475)
(360,535)
Net current assets
27,173
27,173
Capital and reserves
Called up share capital
9
50,000
50,000
Profit and loss reserves
10
(22,827)
(22,827)
Total equity
27,173
27,173

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 19 February 2024 and are signed on its behalf by:
Mr Saud Hafeez Siddiqui
Director
Company registration number 13519992 (England and Wales)
KHALIJ INVESTMENTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 20 July 2021
-
0
-
0
-
0
Period ended 30 September 2022:
Loss and total comprehensive income for the period
-
(22,827)
(22,827)
Issue of share capital
9
50,000
-
50,000
Balance at 30 September 2022
50,000
(22,827)
27,173
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
0
-
0
Balance at 30 September 2023
50,000
(22,827)
27,173
KHALIJ INVESTMENTS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
23,440
(81,292)
Finance charge
(45,000)
56,250
Net cash outflow from operating activities
(21,560)
(25,042)
Investing activities
Other loans
-
0
(300,000)
Net cash used in investing activities
-
(300,000)
Financing activities
Proceeds from issue of shares
-
0
50,000
Other loans
-
0
300,000
Net cash (used in)/generated from financing activities
-
350,000
Net (decrease)/increase in cash and cash equivalents
(21,560)
24,958
Cash and cash equivalents at beginning of year
24,958
-
0
Cash and cash equivalents at end of year
3,398
24,958
KHALIJ INVESTMENTS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

KHALIJ INVESTMENTS PLC is a public limited company by shares incorporated in England and Wales. The registered office is York House, Unit 4, Langston Road, Loughton, Essex, England, IG10 3TQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

In assessing the validity of the going concern basis, the Directors have considered the return from investment and level of facilities available to the company during the year and for the period ahead. Having considered the company's financial budget, investment and financial commitments and cash flow commitments requirements for the year until 30 September 2023, the Board expects to continue to meet all financial movements as well as ensuring that liabilities are settled as they fall due.

 

Having considered the above, the Board conclude that it is appropriate to adopt the going concern basis of the accounting because there are no material uncertainties related to events or conditions that may cast significant doubt the ability of the company to continue as going concern.

1.3
Revenue

Income from financing and financing costs are recognised in the income statement on an effective profit rate ("EPR") basis. The EPR is the rate that, at the inception of the financial asset or liability, discounts expected future cash payments and receipts over the expected life of the instrument back to the initial carrying amount. When calculating the EPR, the directors estimate cash flows considering all contractual terms of the instrument but do not consider the risk of the assets' future payment losses.

 

At each reporting date, management makes an assessment of the expected remaining life of its profit-bearing financial assets and liabilities and where there is change in those assessments, the remaining amount of any unamortised discounts or premiums is recognised prospectively. The calculation of the EPR includes all transaction costs and fees paid or received that are an integral part of the finance cost.

 

Transaction costs includes incremental costs that are directly attributable to the acquisition or issue of a financial asset or liability.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

KHALIJ INVESTMENTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective profit rate unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of return. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of return. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective finance charge method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective finance charge method.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Employee benefits

There were no employees during the period other than directors, who did not receive any remuneration.

KHALIJ INVESTMENTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Effective profit rate

 

FRS 102 requires profit earned and incurred on loans and borrowing costs respectively to be measured under the effective profit rate method. Management must therefore use judgment to estimate the expected life of each instrument and hence the expected cashflows relating to it.

 

3
Revenue

The total revenue of the company for the period has been derived from its principal activities wholly undertaken in the United Kingdom.

4
Employees

The average monthly number of persons (excluding directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
5
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
-
0
(22,827)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 0% (2022: 19.00%)
-
0
(4,337)
Other difference
-
0
4,337
Taxation charge for the year
-
-

Factors that may affect the future tax charges

Khalij Investment PLC is deemed a Securitisation Company under the Taxation of Securitisation Companies Regulations 2006 (Statutory Instrument 2006/3296) and is taxed in accordance with these provisions.

KHALIJ INVESTMENTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other loan
300,000
300,000
Accrued finance income
95,250
62,750
395,250
362,750
7
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Loan certificates
8
300,000
300,000
Other creditors
39,285
60,535
Accruals and deferred income
20,940
-
0
360,225
360,535
8
Loans and overdrafts
2023
2022
£
£
Loans from related parties
300,000
300,000
Payable within one year
300,000
300,000
9
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
10
Profit and loss reserves

Profit and loss account includes all current retained losses.

11
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

KHALIJ INVESTMENTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
11
Related party transactions
(Continued)
- 18 -

Creditors at the year end includes an amount of £300,560 (2022: £300,560) due to Khalij Services Limited, a company where directors have interest. Finance charge of 15% per annum is charged on the outstanding amount. At the year end, an amount of £11,250 (2022: £56,250) is included in other creditors in respect of accrued finance costs.

 

Other creditors at the year end includes an amount of £3,500 due to Khalij (UK) Limited, a company where directors have interest. No profit is charged on this amount and the amount is repayable on demand.

 

At the year end other creditors include amount of £35,000 (2022: nil) due to the directors of the company and £225 (2022: £225) due to the shareholders of the company.

12
Controlling party

The directors are the ultimate controlling party by virtue of majority shareholding. Being securitization platform, the shareholders are holding the shares of the company in trust on behalf of an independent UK registered charity.

13
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit/(loss) for the year after tax
-
0
(22,827)
Movements in working capital:
Increase in debtors
(32,500)
(62,750)
Increase in creditors
55,940
4,285
Cash generated from/(absorbed by) operations
23,440
(81,292)
14
Analysis of changes in net debt
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
24,958
(21,560)
3,398
Borrowings excluding overdrafts
(300,000)
-
(300,000)
(275,042)
(21,560)
(296,602)
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